New York - If you
want to reduce the risk of inflation on your investment portfolio, you should consider
using a technique known as "laddering."

Laddering
is a method whereby your income producing investments such as bonds or certificate of
deposits maintain a rolling maturity date. For example, you would make several investments
that mature on different dates (i.e, six months). This allows you to close out the initial
investment and re-invest proceeds in the current interest rate environment.

If interest rates are higher, you can invest in
longer-term instruments and you can invest in shorter-term investments when interest rates
are lower. Laddering also gives you the benefit of having specified investment mature
simultaneously with the need of cash for various things such as college expenses or a
wedding.